SODIC announced today that its majority controlled consortium (+50%) has won a government sponsored bid to develop a for lease retail center in a prime location in Mansoura, the capital of Dakahlia, 120 Km northeast of Cairo. Dakahlia is one of the relatively wealthier governorates with a catchment of 1.2 million people and enormous pent-up demand for commercial and retail developments. The project will allow SODIC to further diversify into the lucrative for lease retail development. It also helps the Company expand its addressable market into the large and lucrative middle class segment outside of Cairo. The presence of Carrefour along with the array of experiences of SODIC’s partners in the consortium provide strong support for an efficient and profitable development.
Located on a primary highway connecting the Dakahlia governorate’s major towns, the plot area is 63,000 sqm, permits 37,800 sqm of gross built area and a 27,720 sqm of net leasable area. The project is to be fully constructed in an 18 month time frame and is leased from the government for a 50 year period. The consortium forecasts the investment cost of the Mansoura commercial centre will be in the region of EGP 210 million and have capitalized the company at in excess of EGP 160 million. The consortium has already secured a commitment from Carrefour for the anchor retail store of 5,000sqm.
SODIC owns over 50% of the consortium that won the bid for the development of the commercial centre. SODIC partners in the consortium provide a unique mix of experiences in development, retail, and construction segments of the Egyptian market. Other than SODIC, the consortium includes Bonyan – a subsidiary of SIAC, one of Egypt’s largest contractors and pioneers of industrial parks in Egypt, Bonaya – a subsidiary of Juhayna) (Egypt’s leading dairy industrial company); Garden City, a holding company chaired by Mr. Shafik Boghdady and Vice-chaired by Mr. Magdy Rasekh, GAZO – the holding company of Galal Zorba - and Mr. Ali Moussa – head of Egypt’s Chamber of Commerce.
SODIC’s consortium won the tender based on the strength of the consortium as well as the strength of the concept submission which was ranked first on a point system set out in the tender documents. The concept includes providing services such as entertainment facilities, hypermarkets and department stores, food and café outlets, furnishing supplies, clothing materials, automotive services among many other retail and commercial activities that will become a destination for the whole Governorate.
“Mansoura has a strong need for modern shopping centers, lacks entertainment facilities across all categories including cinemas, restaurants, and amusement areas and its total expenditure on retail in catchment is 26 billion EGP; SODIC, on the other hand, has been restructuring its strategy and diversifying its portfolio to focus on commercial and retail development. For us, leading a consortium to enter this complements this strategy perfectly and we are extremely happy to have won,” stated Maher Maksoud, CEO of SODIC.
The tender was part of the government’s initiative to direct investment towards diversified development opportunities outside of Cairo and target the growing middle classes in these secondary cities. As a part of this strategy, the Government has identified and is making available significant land tracts to private sector investors -both local and international- to develop commercial real estate developments in a structured and well-planned manner.
